FROM OCTOBER 1 WE EXPECT NEW PRICE INCREASE: Here is the list of items!

The Government of Serbia approved the Draft Law on Excise Law Amendment, which proposed an eight percent increase in excise duty on petroleum derivatives, tobacco products and alcoholic beverages, coffee and e-cigarette refills. The law applies from October 1, provided that some of the provisions are implemented later than the specified deadline.

In the clarification, it is stated that due to the proposed increase in excise duty, an increase in revenues, mainly from oil derivatives and cigarettes, of about four billion dinars is expected by the end of 2023.

It is added that in order to avoid the increase in costs due to the increase in the excise duty, the amount up to which the right to refund the excise duty is exercised for petroleum products used for transport purposes, heating, as well as for industrial purposes, for purposes and also for reduced costs of agricultural producers, i.e. farms and natural persons registered in the register of agricultural farms, it was proposed to establish the refund of the excise duty paid for oil derivatives – diesel and biofuel, which is used as motor fuel for agricultural purposes to drive agricultural machinery.

It was also proposed that, given that the volume of products subject to excise duty in Serbia is less than that required by the Directive on the taxation of energy sources and electricity, the imposition of an excise duty on natural gas for final consumption, which is used as a fuel for driving motor vehicles and for heating will be from January 1, 2025. It is emphasized that the proposed legal changes have been carefully measured, so as not to cause unwanted disturbances in the Serbian market, increasing budget revenues .